Compilation of Rules and Regulations of the State of Georgia
Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER
Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE
Subject 120-2-14 - GEORGIA AUTOMOBILE INSURANCE PLAN
Rule 120-2-14-.14 - Claims against Plan; Members and Staff

Current through Rules and Regulations filed through September 23, 2024

(1) The Plan shall pay on behalf of any individual or subscriber all sums which the individual or subscriber shall become legally obligated to pay as a result of or in connection with the performance of official duties as an officer, employee or representative on any committee of the Plan.

(2) The Plan shall have the right and duty to defend any suit or claim against such individual or subscriber seeking damages as a result of or in connection with the performance of official duties as an officer, employee or representative on any committee of the Plan.

(3) The Plan shall be obligated under paragraphs (1) and (2) above regardless of when claim or suit is made, as long as the incident giving rise to the obligation occurred during the period of time that individual or subscriber served as an officer, employee or representative on any committee of the Plan, and was acting in such official capacity.

(4) The Plan may make such investigations and settlements of any claims or suits as it deems expedient.

(5) The cost of fulfilling the obligations of the Plan as described in this Rule shall be an expense incurred pursuant to Rule 120-2-14-.07.

(6) The obligations of the Plan as described in this Chapter do not arise:

(a) If the individual or subscriber fails to report the claim or suit to the manager of the Plan within ten (10) days of actual notice of such claim or suit; or

(b) If, after the defense of a claim or suit arising pursuant to this section it is adjudged that the officer, employee or representative acted in bad faith, then the Plan shall be reimbursed by such officer, employee or representative for expenses incurred in such defense.

O.C.G.A. §§ 33-2-9, 40-9-100.

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